Income from Buy-to-let pushes past £10,000 - finds Paragon Mortgages
Landlords' returns on buy-to-let properties have moved beyond the £10,000 barrier for the first time, Paragon Mortgages has found.
After three months of continued growth, rental yields broke into five figures for the first time since Paragon Mortgages began its Buy-to-Let index.
John Heron, managing director of Paragon Mortgages, commented: "Landlords have been seeing steadily rising rental incomes over the past three months, helped by good levels of tenant demand which is in part attributable to the ongoing impact of affordability constraints on first-time buyers.
” "This is now feeding through into higher yields, which have risen for the last two consecutive months, despite the fact that buy-to-let property prices have continued to rise steadily.
"With solid returns on their lettings businesses and strong levels of capital appreciation over the past year landlords continue to benefit from good overall returns - taking into account both rental income and capital appreciation.
"Overall returns have now reached 29.5 per cent, up from 24.5 per cent last month and 23.6 per cent in September this year."To find out more about buy-to-let mortgages, click here.
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